Sarawak Plantation to raise long term seed capacity by 2030

KUCHING (Dec 31): As the sole seed production centre in Sarawak with an annual capacity of 1.6 million Surea DxP seeds, Sarawak Plantation Bhd (Sarawak Plantation) plans to raise capacity to 2.6 million seeds by 2026 with a longer-term target of 4.4 million seeds by 2030.

The group’s seed production unit produces high-quality seeds under the Surea DxP brand, which have been tested and shown to deliver strong fresh fruit bunch (FFB) yields, higher oil extraction rates and a moderately slower height increment.

Following a site visit to Sarawak Plantation’s operations in Miri, researchers with Public Investment Bank Bhd (PublicInvest Research) said that the main constraint to capacity expansion is the long gestation period of mother palms, which can take up to 10 years to mature.

Despite this challenge, it said Sarawak Plantation maintains strict quality control, achieving seed purity of up to 97.5 per cent. Seeds produced from selected mother palms also exceed SIRIM standards.

It added that the Surea DxP seeds, which are now being commercialised and planted across its Sarawak estates, have demonstrated strong yield potential.

On peat soil, they can achieve FFB yields of up to 17 tonnes per hectare and an oil extraction rate (OER) of 25 per cent, compared with Sarawak’s average FFB yield of 15 tonnes per hectare and average OER of 19 per cent.

Bakau, Subis and Ladang 3 estates, which began planting Surea DxP seeds in 2013 and 2014, have recorded FFB yields of between 19 and 23 tonnes per hectare after 10 years.

“One of the most interesting parts of its Surea DxP seeds is it could slow the height increment throughout the growth stages, which makes the task of harvesting easier for the workers.

“Furthermore, the Surea DxP seedlings have been inoculated with Hendersonia sp, an endophytic fungus proven by Malaysian Palm Oil Board (MPOB) that can protect against the Ganoderma disease,” it said.

During the site visit, analysts also observed Sarawak Plantation’s newly developed mechanised harvesting solution.

The patented 3-in-1 machine, jointly designed with a China-based engineering company, integrates pruning, harvesting and fruit bunch handling into a single operation.

It is capable of loading harvested bunches into its bucket and unloading them into the nearest collection bin. The machine can operate at heights of up to 9 metres and is controlled wirelessly by a single operator.

PublicInvest Research noted that trial data have shown that each unit can harvest about 300 bunches per day, covering about five hectares each day.

Sarawak Plantation expects the machine to reduce reliance on foreign labour by nearly 50 per cent and significantly improve productivity.

Sarawak Plantation currently operates 10 units of the “Lipan” machines in the northern region and plans to gradually increase the fleet to 100 units in the near term.

However, further refinements are still required especially for operations in hilly terrain.

As at September 2025, Sarawak Plantation manages 13 oil palm estates with a total landbank of 42,185 hectares mainly in northern and central Sarawak.

The planted area stands at about 29,000 hectares, with an average tree age of nine years. The group also has another 3,100 hectares available for new planting, while about 38 per cent of its plantations are located on peat soil.

Sarawak Plantation operates two palm oil mills in Niah and Mukah, with a combined milling capacity of 140 tonnes per hour. About 46 per cent of the group’s FFB supply is sourced from external purchases.